Replies to This Discussion

Permalink Reply by Daniel Morris on August 8, 2011 at 4:00am

You need to get a copy of the original lease and find out its terms. Right now, you don't have enough information to make a decision. It may well be the company it was leased to has recognized the potential of new gas developments and they are trying to slip into your game.

Permalink Reply by rdbandkab on August 8, 2011 at 4:10am

Thank you for your quick reply. 

I'll see if I can get a hold of that original lease.

It just doesn't seem right for them to be able keep the terms of a lease signed so many years ago, with a now deceased land owner.    You would think that one couldn't have a lease with a term of "forever". 

We were told that the sign in check for the lease would net us enough for a nice dinner out.  (this on less than 1000 acres, but more than 500).   

I have no idea if we should expect much in the way of royalties also.   I'm still trying to figure this whole deal out.

Thanks again!

richy  

Permalink Reply by Daniel Morris on August 8, 2011 at 4:15am

They may be able to hold the lease as long as they can claim they are producing, their lease is in effect. But, from what you say, they have no claim on the gas, just the oil. Who is getting royalties on the oil production? You should get no less than $1000 per acre signing bonus for Marcellus shale. The minimum production royalty is 12.5%. With the acreage you indicate you could afford several dinners out on a signing bonus alone and with royalties you could  buy the restaurant, or a chain of them.

Permalink Reply by rdbandkab on August 8, 2011 at 5:37am

Thank you again Daniel..

 

I'll see if I can get that original lease.   I have a feeling that the verbage will still be out of our favor.    They might have stipulated "all" mineral rights? (oil and whatever exsists).

I still have to learn about the royalties aspect.   The person hired by the energy company said they may find a little gas or a lot.

I'm not sure how many places they'll drill or how many rigs?   Or even if they'll find gas actually.

Time will tell.....  I'll keep trying to figure this out.

 

Thanks again for your information!

 

richy

Permalink Reply by brinlady on August 8, 2011 at 6:54am

You might want to follow this West Virginia lawsuit:

 

http://wvgazette.com/News/201105261663

 

http://www.newsandsentinel.com/page/content.detail/id/138543/W-Va--...

 

The circumstances are not quite the same (the leasing company has not developed the minerals), but the suit does deal with an old lease and you may find some applicable parallels. 

 

If you plan to contact an attorney, in addition to the lease, as Daniel noted, it would also be helpful to have the wills of all the individuals going back to the original landowner and copies of the most recent paid tax receipts for the leased property.

 

Regards,

 

Brinlady

Permalink Reply by rdbandkab on August 8, 2011 at 7:17am

Thank you all for your help on this issue!

Permalink Reply by Joshua Harkey on August 8, 2011 at 9:21am

Due to the high number of mineral reservations in this area from long ago you will run in to this quite often.  Most of the old leases were cover-alls to be able to produce either oil and/or gas.  As long as there is any production on this land from said lease, the tract is known to be "held by production".  As long as any well is producing in paying quantities, the lease is still good.  That being said, the heirs of this person should be receiving royalty payments on this well.  Chances are they are contacting you now to try to find all the heirs of said Lessor so that they may pay off any royalties being held.  If no one is getting payments from this well, you can file an affidavit of non-production and non-payment, which does not require you to have to pay an attorney to do this for you.  Most all oil and gas companies do thier own geneology work on thier own.  There are not specific companies that do this.  Most of the information needed can be found in the courthouse.